Govt to decide on incentives sought by Apple

Govt to decide on incentives sought by Apple

The meeting will take place in early January

The Dollar Business Bureau 

As a follow-up to Apple’s intention to set up a manufacturing unit in India, a group of senior officials from various ministries will deliberate on the issue next month.  

The officials, who will be a part of the meeting, will be from the department of commerce; industrial policy and promotion (DIPP); finance; revenue; environment and forest; and electronics and information technology (DeITY). The meeting is scheduled for the first week of January. 

The technology major has asked for several tax and other incentives to establish their manufacturing unit and the government has refused to accept the same, according to sources. As per the administration, the Cupertino-based company should not seek additional help from the government as India already provides a very conducive environment to encourage electronic manufacturing. 

"Several companies in India are manufacturing mobile phones in India. Nobody is asking for additional incentives,” highlighted the sources. 

One such benefit is that of Modified Special Incentive Package Scheme (MSIPS) which provides financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in Special Economic Zones, among other things. 

 The government had earlier refused to accept Apple’s demand of relaxing 30 per cent domestic sourcing norms as a pre-requisite to set up single-brand retail stores in the country. 

The company had made this demand citing the fact it makes cutting-edge technology for which local sourcing is not an option. The company had also proposed to import refurbished phones and sell them in India, which was also rejected by the government back then.

The Dollar Business Bureau - Dec 30, 2016 12:00 IST